NEW YORK, Aug. 31, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) is filing a class action lawsuit against World Health Alternatives, Inc. (World Health or the "Company") (OTCBB:WHAIE), three of the Company's senior officers and Daszkal Bolton LLP, the Company's independent outside auditor, on behalf of all persons or entities who purchased the securities of World Health between June 26, 2003 and August 18, 2005 (the "class period"). The case is being filed in the United States District Court, Western District of Pennsylvania. The lawsuit is seeking to pursue remedies under the Securities Exchange Act of 1934.
World Health is a Pittsburgh based company that provides medical, professional, and administrative staffing services to the healthcare industry in the United States. During the class period, Defendants issued, or caused to be issued, false and misleading statements to artificially inflate the value of World Health Stock. Through Defendants' false and misleading statements, the Company was (i) able to mislead investors as to the number of outstanding shares the Company had, (ii) manipulate financial statement recognition of a convertible debenture and warrant agreement, (iii) underpay certain tax liabilities in excess of $4 million, and (iv) obtain an additional $6.5 million in funding from its lenders that was in excess to its loan agreements by submitting irregular reports to the Company's lenders. As a result, the Company has terminated its outside auditor, Daszkal Bolton LLP, retained outside counsel and the Board of Directors has retained special counsel to assist it with its investigation. Further, the Company has determined that it will be restating its prior financial statements and has warned investors not to rely on the information contained therein. Thus, Company's reported earnings statements for the interim periods were inflated in violation of Generally Accepted Accounting principles ("GAAP").
The complaint also alleges that World Health and Richard E. McDonald, the Company's Chairman of the Board and President, Marc D. Roup, Chief Executive Officer and Director, John C. Sercu, Chief Operating Officer and subsequent Interim Chief Executive Officer and Acting President, were privy to confidential and proprietary information concerning the Company. By reasons of their positions with the Company, the Individual Defendants had access to internal Company documents, reports and other information, including the adverse non-public information concerning the Company's services, financial condition, and future prospects. As a result of the foregoing, they were responsible for the truthfulness and accuracy of the Company's public reports and released described herein.
The complaint further alleges that Daszkal Bolton LLP, the Company's independent outside auditor at all relevant times, issued audit reports on the Company's publicly filed annual financial statements certifying: (i) that it had audited World Health's financial statements in accordance with generally accepted auditing standards; (ii) that it had planned and performed its audits "to obtain reasonable assurance about whether the financial statements are free of material misstatements"; (iii) that, in its opinion, the Company's financial statements "present fairly, in all material respects, the financial position" of World Health in conformity with generally accepted accounting principles; and (iv) that its audits provided "a reasonable basis for (its) opinions."
If you purchased the securities of World Health Alternatives, Inc. during the Class Period, you have until October 24, 2005 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4.Pomlaw), toll free. Those who inquire by email are encouraged to include their mailing address and phone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.